The forest’s eerie atmosphere was almost palpable. You could almost feel the uncanny surroundings at your fingertips. The unnatural, choking mist that swirled and sprawled on the forest floor was only the first part of many more immoral happenings that occurred in this once but no more beautiful woodland . There was a time when the forest was very much contradicting how it is now- it was full of stunning verdant leaves and the trees gave of a strong yet calming scent. With a clear, distinguished path that was a pleasure to pass by. Not anymore. The sickly white mist substance seemed to possess any living organism with it's enticing panoramic view to come closer, deeper into the forest only to see it's pure and utter ugliness. The smoke made no sound however only parted to swallow up her feet as she marched upon the lifeless, old forest. The sound of mushy and dead leaves whispered from under the skin of the mist. It was a creaking shack created by nature that remained isolated, untouched; when it wasn’t, it swiftly transformed to a monstrous, beast-like ghost ready to consume you at any given chance. Much like the ghost that was standing right before James. His leg was intertwined in the tree’s branches that were creepy arms tangling around each other...

The forest’s eerie atmosphere was almost palpable. You could almost feel the uncanny surroundings at your fingertips. The unnatural, choking mist that swirled and sprawled on the forest floor was only the first part of many more immoral happenings that occurred in this once but no more beautiful woodland . There was a time when the forest was very much contradicting how it is now- it was full of stunning verdant leaves and the trees gave of a strong yet calming scent. With a clear, distinguished path that was a pleasure to pass by. Not anymore. The sickly white mist substance seemed to possess any living organism with it's enticing panoramic view to come closer, deeper into the forest only to see it's pure and utter ugliness. The smoke made no sound however only parted to swallow up her feet as she marched upon the lifeless, old forest. The sound of mushy and dead leaves whispered from under the skin of the mist. It was a creaking shack created by nature that remained isolated, untouched; when it wasn’t, it swiftly transformed to a monstrous, beast-like ghost ready to consume you at any given chance. Much like the ghost that was standing right before James. His leg was intertwined in the tree’s branches that were creepy arms tangling around each other...

This is a good piece of writing just a few comments:
- "...uncanny surroundings" - did you mean "peculiar"? "Uncanny" is a slightly strange choice of word there.
- "immoral" - as above; make sure you know the exact meanings of the words you're using!
- "...was very much contradicting" - "there once was a time" describes a singular, finished event in the past, so you should be using the simple past ("very much contradicted"). Also, "contrasted with" might be better than "contradicted."
- "With a clear..." - the fragment here is unnecessary; I would use a comma and continue on from the previous sentence. "Distinct" is preferable to "distinguished", since the latter has connotations related to social class which of course don't work here.
- "Not anymore." - I just felt like commenting on this because I like it; it creates tension
- "possess...to" - "compel" would be better here.
- "it's" - "it's" = it is, belonging to it = its.
- "marched upon" - "through" sounds better; "upon" is like "on top of."
- The last few sentences are very nice
- "creepy" sounds a little too colloquial; "creeping" is better. You could also use a colon or a hyphen instead of "that were" to make it less clunky.